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Apr 28, 2013

LPG gas subsidy will come in bank account from Oct 1

Government
wish to implement the much desired wish to implement direct cash subsidy from October
1, 2013 with giving subsidy direct to the bank account of LPG gas connection
holder using the Aadhar card platform.

Government
has fixed the date October 1 for implement this scheme throughout the country.

This
scheme requires the LPG gas connection holder to open the Aadhar linked bank
account to get the subsidy.

Banks
start to inform the account holders as well as public to add Aadhar card in the
bank account to get the subsidy of LPG gas connection. Some banks choose
different way of information like sms, notice in ATMs and branches and notice
at websites to inform adding Aadhar card as soon as possible.

A consumer
will get around 4000 rupees of subsidy in a year as the number of subsidiary LPG
cylinders is limited to 9 per year to a consumer.

UIDAI
department has issued around 32 crore Aadhar cards till now but around 80 lakhs
Aadhar cards are linked to the bank accounts so far.

Government
will implement this desired pilot projects in installments as 20 districts of
the country will come in the first phase and will be covered from May 15.

In this scheme, a consumer need to pay the market
price of the LPG gas cylinder which is currently 901.50 rupees per 14.2 kg
cylinder and the subsidy amount 435 rupees per cylinder will come in the bank
account. The subsidiary price of gas cylinder is 410.50 currently.

There
are around 14 crore LPG gas consumers in the country and government needs to
bear a lot of amount in subsidy.

Government
is in the way of reducing the subsidy amount as well as stops the black
marketing and ghost connection.

In this
process, first government asks for KYC. Then limited the number of LPG gas
connection top 9 per year and now the direct cash subsidy.

A genuine
consumer will get little effect with these new formalities but it will surely
hit hard to the ghost connections.

There
are many things to be done before implementing direct cash subsidy. There are
issue for applying Aadhar cards and fingerprint as well as UIDAI must look the
matter of speeding the process and provide high class and big machine which can
take finger prints of old peoples and children.